Fingerprint Cards Ab Class B · OMXSTO:FING_B
Fingerprint Cards Ab Class B — Q2 2024 Earnings Presentation
15 slides from Fingerprint Cards Ab Class B's earnings presentation, Aug 15, 2024
Slide 1: Q2 2024 Webcast
Q2 2024 Webcast, 15 August 2024 Adam Philpott, CEO Fredrik Hedlund, CFO
Slide 2: Agenda
AGENDA EXECUTIVE SUMMARY STRATEGIC INITIATIVES • Transformation to drive profitable growth • Cost optimization • Strengthen balance sheet • Strategy Q2 2024 FINANCIALS • Revenue and clients • Key figures Q&A
Slide 3: Executive summary – Q2 2024
Executive summary – Q2 2024 Q2 2024 Key figures Achieved +10.5% growth in core revenue amidst Q2 Q2 Q1 transformation and cost reduction efforts (incl. Mobile SEKm 2024 2023 Change 2024 revenue decreased 45%) Revenue 112.4 203.3 -45% 146.4 Successfully executed on our Transformation Plan Mobile phas
Slide 4: Transformation to drive profitable growth
Transformation to drive profitable growth ✓ = Covered in today’s presentation Strategic transformation Three phase plan 1 2 ✓ ✓ ✓ STABILITY PHASE Portfolio Refresh Cost Optimization Focus on cost optimization, financial discipline, and ONE Core high margin products 3 4 ✓ ✓ Strengthen Balance ✓ ACCEL
Slide 5: Stability and gearing towards accelerated growth
Stability and gearing towards accelerated growth PHASE ONE PHASE TWO STABILITY ACCELERATE GROWTH Cost optimization / financial discipline / high margin products Strategically invest for profitable growth CHALLENGE EXECUTION • Limited diversification of CAPEX: Focus on scale-driven and • Strategy Dev
Slide 6: 1. Portfolio Refresh
1. Portfolio Refresh DISCONTINUATION PROCESS MOBILE PC REVIEW products that don't fulfil INVEST criteria or underperform financially Invest where ROIC > WACC CORE PAYMENTS BUSINESS INVEST in products that meet strategic, competency, and financial criteria (organic / inorganic) Cost of Capital Hurdle
Slide 7: 2. Cost Optimization
2. Cost Optimization Headcount1 (#) Free Cash Flow3 (SEKm) 185 -31% 172 119 -23,5 +42.0 -64,8 -65,5 Q4’23 Q1’24 Q2’24 Q4’23 Q1’24 Q2’24 Cost optimization on right trajectory to Cash burn reduced by 2/3rds reach and exceed target Notes: 1) End of Period, Including consultants. 2) Full Time Equivalent
Slide 8: 3. Strengthened Balance Sheet
3. Strengthened Balance Sheet Rights issue and convertible bond • Cash injection: Completed majority of SEK 275m rights issue Rights issue outcome, SEKm • Simplified capital structure: Early redemption of the outstanding convertible bonds, enhancing financial flexibility and ultimately reducing dilu
Slide 9: 4. Strategy – Market Opportunity
4. Strategy – Market Opportunity Zero Trust: ~$30B1 market growing at ~17%1 Fingerprints General Overview: "What are the Benefits of Zero Trust? While no security strategy is perfect, zero trust is among today's most effective strategies as it: Reduces the attack surface and risk of a data breach. “
Slide 10: 4. Strategy – Fingerprints Opportunity
4. Strategy – Fingerprints Opportunity PASSWORDLESS SSO Biometrics Market MODALITIES FIDO ✓ ✓ Sensors & Devices IDENTITY ENGINE 20% ~$40 Billion 80% ✓ PASSWORDLESS SDK LOGIN Platforms, Software, Services, Adjacent Hardware, etc. PASSWORDLESS ✓= Existing customer 10 MFA base for Fingerprints
Slide 11: Q2 2024 Financials
Q2 2024 FINANCIALS @ FINGERPRINTS
Slide 12: Revenue and clients – Q2 results
Revenue and clients – Q2 results Revenue by product group Q2 Dynamics Q2 Q2 Q1 PC: Continued to see growth in existing PC models SEKm Change 2024 2023 2024 Progressing on new models at multiple clients PC 27.1 25.9 5% 28.5 Investing in global supply chain for international clients Holding penetratio
Slide 13: Key figures – Q2 results
Key figures – Q2 results Key figures Q2 Dynamics Q2 Q2 Q1 Revenue: Core product groups grew by 10.5%, mainly driven by SEKm 2024 2023 Change 2024 strong sales in our Access product group (incl. Mobile revenue decreased 45%) Revenue 112.4 203.3 -45% 146.4 Gross margin: Significantly impacted by depre
Slide 14: Q2 Summary
Q2 Summary Core Revenue Core products saw a revenue increase of 10.5%. As we continue to phase out low-margin Mobile Growth revenue, we anticipate substantial improvements in gross margin, aligning with our strategic goals Cost Cost optimization is on track, achieving a 31% reduction in headcount vs
Slide 15: Fingerprints
FINGERPRINTS